We’re bringing you everything you need to know about the potential third stimulus check, including information on new rules that can bring you more money!
The terms and conditions for the $1,400 stimulus check are ever-changing, as both lawmakers and US leaders mull over what the new rules for a “targeted” stimulus payment should be. Earlier this week, Democrats proposed a new change to keep the highest earners from getting a payment — although lower- and middle-income households will still be delivered a full or major portion of the $1,400 max per individual.
The changes in income limits are just one part of the picture. Other things under consideration include making whole new groups of people eligible for stimulus checks, increasing how much people get, and limiting how much yet other people receive.
Additionally, it remains unclear when the third stimulus check will arrive and whether or not the Democrats will successfully accelerate the timeline by bypassing Republican opposition.
What is the latest stimulus check proposal?
A few days ago, Biden said, “We need to target that money. So folks making $300,000 don’t get any windfall.”
Democrats are slowly coming to a conclusion to provide $1,400 per person maximum and targeting it so Americans with the highest incomes don’t get a check.
This would exclude taxpayers making an AGI of $100,000/yr or couples earning $200,000/yr. This is without taking dependents into account, however, which further complicates the situation a little.
Would a third stimulus check draw from 2019 or 2020 taxes?
The most recent Democratic proposal determines your total based on income from either your 2020 or 2019 tax returns. If you qualify for the full amount based on your 2020 taxes, but not your 2019 ones, don’t worry. The difference will be made up when the IRS is able to process it.
Approval could be sooner than expected
The COVID-19 stimulus bill could be approved and go to the Senate before the end of the month. However, even in such a scenario, it is unlikely for everyone to receive the stimulus payment immediately.
Will the IRS process the third check quickly?
The IRS has truly had their resources stretched to the limit recently. With the second stimulus checks, there were millions of errors and now those people will be claiming stimulus money as part of their 2020 tax filing. However, it’s too soon to say whether the IRS will be able to process the third check anywhere near as fast.
Is there anything you can do to get your third check faster?
Your stimulus check and taxes are closely related. If you file your taxes sooner, you’ll likely get the refund sooner. Setting up direct deposit with the IRS also helps speed up refunds. If you moved recently, let the IRS and USPS know immediately.
Which other stimulus check qualifications could change with the next payment?
Besides the change in income cap, Biden has also proposed expanding qualifications to dependents of any age, not just of those less than 17 years.
A third stimulus check could make more groups of people eligible to receive money (namely noncitizens who pay taxes), and bring a larger total check to qualified individuals and their families, including possible $1,400 payments to dependents. A change to your circumstances might also mean you qualify for more money this time.
In any case, we recommend filing your taxes as soon as possible to receive the stimulus check money soon too. Here’s a tentative timeline of how this could look:
WHEN TO EXPECT YOUR TAX REFUND:
|If you file on this date||This is the soonest||This is the latest|
|Feb 12||Feb 19||Mar 5|
|Mar 1||Mar 8||Mar 22|
|Apr 1||Apr8||Apr 22|
|Apr 15 (last day to file)||Apr 22||May 6|
|Oct 15 (last day with extension)||Oct 22||Nov 5|
If you haven’t yet, book an appointment with one of our tax experts now by clicking here!